Md. health plan's enrollment, funding up

Enrollment in the Maryland Health Insurance Plan has more than doubled to nearly 15,000, shattering a mid-2008 goal the state-run program set for itself last year.

MHIP leaders say changes to the plan, an aggressive marketing initiative and a law passed in 2005 that directed some self-employed workers to MHIP has led to growth in enrollment from 6,246 in 2005 to more than 14,700 now. In April 2007, Richard Popper, MHIP's executive director, said the goal was to have 13,600 by mid-2008.

To keep pace with the enrollment hike, MHIP received an additional $26 million this year. The state's Health Services Cost Review Commission increased the program's funding in April from $81 million to $107 million.

"It became apparent that we would have to cap enrollment numbers without more funding," Popper said.

State health leaders say without the plan's coverage of uninsured residents, Marylanders would pay more to cover uncompensated care provided by hospitals. Some of those covered by the plan have chronic illnesses that require frequent and often expensive hospital health services, said Steve Ports, deputy director of HSCRC. He said the program helps hospitals avoid greater uncompensated care costs, a savings ultimately passed on to Maryland's health care consumers.

Based on its growth, MHIP could have roughly 17,000 members by 2009. The additional funding will allow the program to accommodate about 16,500 members, Popper said.

MHIP provides health insurance to those who aren't eligible for Medicare, don't qualify for Medicaid, can't afford private health insurance or who can't get coverage because of specific health conditions. The MHIP Plus program, which was added to the state's plan in 2005, provides more health insurance coverage for low-income individuals and families. CareFirst BlueCross BlueShield administers the plan for MHIP.

Popper said over the last few years, MHIP has expanded its network of doctors from about 7,000 to more than 20,000. MHIP also spent $300,000 over the last year to promote the program to health care providers and hospitals. In 2004, MHIP also reduced its premiums to make the program more affordable. However, premium rates were increased ­-- ranging from 7.6 percent to 20 percent -- on its plans effective July 1.

Popper said the plan also has received more attention from self-employed workers. In 2005, state lawmakers took self-employed workers out of the small-group market. Only companies with two to 50 employees can now apply for health insurance in the small-group market. As a result, the only option for self-employed workers who don't qualify for individual coverage is MHIP. About 30 percent of the program's members are self-employed.